Interest rates and fees
Fair rates. Simple fees.
Personalised rates from 6.99%to24.69% p.a.¹
Establishment fee $200 or $450
Won’t affect your credit score
Last updated — July 2020
Harmoney's interest rates range from 6.99% to 24.69% p.a.¹. We assess your current financial circumstances and assign you a rate, so you pay based on your individual circumstances not everyone elses’.
Get your rate
Cost of borrowing
To help you understand the total cost of interest over the term if your loan, you can download a detailed Excel or PDF showing the total cost of borrowing for a range of example loans. These documents include 3 and 5 year terms for loan rates and limits.
About interest rates and borrowing limits
What is an interest rate?
An interest rate is the rate at which you are being charged for your loan, and it is generally based on a percentage of your loan amount applied over a period of time. Most lending institutions charge a fixed (not subject to change) interest rate, whether it’s against a loan or credit card purchase and repayments.
There are a range of factors that contribute to setting an interest rate, and different banks and financial institutions have their own formulas for calculating the rate.
How we calculate interest rates
We know everyone is different, and the size of your loan and the length of time you wish to pay it back in is going to differ from person to person; which is why our interest rates differ from person to person.
Each application is assessed individually and an interest rate applied based on your credit history and other risk predictors, such as stability of employment and residence.
Harmoney’s credit rules set a maximum borrowing limit for different interest rates and is part of our credit risk assessment. However, this isn't the only factor in borrowing limits. Borrowing limits also reflect a monthly repayment the borrower can comfortably repay. This is in alignment with our lending policy, and Responsible Lending principles, which are designed to ensure loan offer limits will not lead to financial stress.
Borrowers who maintain their regular repayments schedule will be charged no additional fees beyone the one-off Establishment Fee.
Harmoney charges an up-front, one-off Establishment Fee of $200 for loans of below $5,000 or $450 for loans of $5,000and above. The Establishment Fee is added to the approved loan amount. The Establishment Fee will be charged on the loan being advanced. These Establishment Fees also apply to Top Ups.
In the case where a repayment is dishonoured, a $15 fee will be charged to the account due to the additional administration required to re-process the payment. The fee will be due in the next payment.
The Overdue Fee is charged if a payment is not made in full and the account goes into arrears. The fee payable is $20 on each of 6, 36, 66, 96, 120 days after the payment date, if the account remains outstanding. The fee will be payable on the next direct debit date.
If enforcement action is required against a borrower, any legal and associated third party costs incurred will be charged to the borrower account. The costs charged are due in the next payment.
The information below is for Retail Lenders and applies to lending prior to 1 April 2020.
Lenders are charged a Service Fee of 1.25% p.a. of the principal and interest payments collected on each note. The service fee is deducted from repayments into the lender account. The fee is paid to Harmoney for managing borrower repayments and administering the account on behalf of lenders.
Service Fees are charged on principal and interest when a loan is prepaid early by the borrower, even when that loan is an on platform re-write.
NOTE: The Service fee will be replaced by a lender fee on all new lending from 13 June, 2016. All lending prior to 13 June, 2016 will continue to incur the Service Fee.
Lender Fee (from 13 June, 2016)
The Lender Fee will apply on all new lending from 13 June 2016. The Lender Fee is charged on gross interest received.
The Lender Fee is tiered, based on how much principal outstanding a lender has on the Harmoney platform, and lenders will move up and down tiers as that amount changes. The applicable fee is applied on an individual loan basis, and is fixed at the time the lender invests in the loan (it does NOT change over the life of the loan regardless of whether the lender moves up or down tiers).
|Tier||Outstanding Principal||Lender Fee |
(% of Gross Interest)
|Tier 1||< $10,000||20%|
|Tier 2||$10,000 - $49,999||17.5%|
|Tier 3||$50,000 +||15%|
Payment Protect Fees
The Payment Protect Fee is calculated as a percentage of the loan amount (including Establishment Fee), rounded to the nearest $25, for those customers who chose to take Payment Protect.
If Payment Protect is taken out on a joint application, it must be taken out by both the primary borrower and the co-borrower; it cannot be taken out by only one party.
|Rewrite||The sales commission and management fee are rebated on a pro rata basis.|
|Prepayment||The unused portion of the management fee is rebated on a pro rata basis.|
|Charge off||The unused proportion of the management fee is rebated on a pro rata basis.|
|Full Waiver||The unused proportion of the management fee is rebated on a pro rata basis.|
The refund is calculation
Payment Protect fee Refund = (p × s × (s + 1)) ÷ (t × ( t + 1))
- "p" is the amount of the Payment Protect Fee
- "s" is the number of whole months in the unexpired portion of the period for which the Plan applied
- "t" is the number of whole months for which the Plan applied.
Terms and conditions
1. Subject to approval and funding. Harmoney’s interest rates range from
2. Establishment fee of
3. To apply in New Zealand you need to be 18 years or older, be a Permanent resident or New Zealand citizen, be earning a stable income and have a valid New Zealand Passport or Drivers License.